United States President Donald Trump is threatening to impose 50% import tariffs on goods from the European Union from 1 June, he said on his social media channel Truth Social.
According to the US president, the negotiations with the EU are "going nowhere," and he therefore advises a 50% tariff from 1 June – in just over a week. There will not be any tariffs if the goods are built or manufactured in the US, Trump added.
"The European Union, which was formed for the primary purpose of taking advantage of the United States on trade, has been very difficult to deal with," he posted.
Trump claims there is a trade deficit between the US and the EU of $250 million a year – a "number that is totally unacceptable," he said. According to him, this is due to the EU's "trade barriers, VAT taxes, ridiculous corporate penalties, non-monetary trade barriers, monetary manipulations, unfair and unjustified lawsuits against American companies, and more."
Stock markets in the red
A 50% tariff is much higher than the 20% Trump previously announced on his so-called "Liberation Day," as he wants to free the US from "unfair trade practices."
Immediately after Trump's threats, the European stock markets went into the red. US stock index futures are also falling.
In Europe, the Bel20 is down around 2% at around 14:10, the Dutch AEX index is down more than 1.8%, the French CAC40 is down almost 2.8% and the German Dax is down around 1.9%.
Meanwhile, the gold price has risen sharply. The price for an ounce of gold (31.1 grams) rose by $60 to $3,355 after Trump's statement. This brings the precious metal back close to the record price of April, when an ounce cost $3,500. Gold is seen as a safe haven for investors in uncertain times.
